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Publications

We are pleased to introduce this important publication titled "Financial and Tax Considerations for Distressed Companies and their Creditors".

This is the first book that INSOL International has published that covers tax issues. We have accepted that in most countries tax issues and tax treatments change constantly and that tax laws are changing sooner than some of the other laws. We...

In the current global insolvency market it is critical that key market players in the profession are kept informed of what is happening in their respective regions and beyond.

In 2000, a survey was carried out on our members’ marketplace around the world which provided an insight into the differing insolvency landscapes across the world. Five years on, it was felt that it was important...

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Firms Publications

On July 1, 2015, the Puerto Rico Electric Power Authority (PREPA) avoided default by making a $415 million payment to bondholders and buying time to continue restructuring negotiations over its approximately $9 billion of outstanding debt. PREPA financed the payment with $153 million from its general fund and the rest from debt-service reserves.

On 23 June 2015, the Council of Ministers passed a law decree which, inter alia, includes urgent measures on the reform of the Italian bankruptcy law and in relation to the deductibility of losses and impairments on receivables accounted by italian credit and financial institutions and insurance companies. The decree will come into force the day after its publication in the Italian Official Journal, although it will have to be converted into law within 60 days of this. Specific measures are set forth to provide a temporary regime.

Many parties have asserted claims against Lehman Brothers Holdings Inc. (LBHI) on the basis that it guaranteed certain obligations of its European subsidiary, Lehman Brothers International (Europe) (LBIE) (LBIE Guarantee Claims). LBHI has filed a motion (the Motion) to estimate the LBIE Guarantee Claims filed against it, for reserve and distribution purposes, at zero dollars. Objections to the Motion must be filed no later than 10 July 2015 (4pm Eastern Time).

The aim of Law 9/2015, on urgent measures on insolvency matters, is to consolidate the amendments that have been introduced by RDL 11/2014 but also to clarify the main controversial issues that have arisen when putting the reforms introduced by RDL 11/2014 into practice. Moreover, Law 9/2015 also attempts to refine the effects produced after a debtor filed the communication foreseen under Article 5bis of the Insolvency Law and to clarify the interpretation of the 90% limitation on the recognition of special privilege (privilegio especial) to secured claims.

In a significant decision affecting the rights of secured creditors in US chapter 11 bankruptcy cases and the ability of borrowers to compel reorganizations over such creditors’ objection, on May 4, 2015, the United States District Court for the Southern District of New York (the District Court) held that a chapter 11 plan of reorganization may be confirmed over the objection of a dissenting class of oversecured creditors – a process known as “cramdown” – where such plan would pay them interest based on below-market rates.

On 10 April 2015, the administrators of Lehman Brothers International (Europe) (LBIE) circulated their thirteenth progress report (the Report) for the period from 15 September 2014 to 14 March 2015 to all known creditors and counterparties. On 30 April 2015, the administrators hosted a one-hour webinar, providing an update on the current progress of the administration, which included a question and answer session. This bulletin summarises some of the key issues raised in the Report and the webinar and highlights other key recent developments.

The filing of claims by a creditor in foreign insolvency proceedings, and the full participation of the creditor in those proceedings, results in the submission to and acceptance of the jurisdiction of the foreign courts in relation to all issues arising in the insolvency proceedings. Creditors should therefore consider very carefully the consequences of filing claims in foreign insolvency proceedings (and/or participating in the foreign insolvency proceedings) as doing so may have unintended consequences.